New Cafeteria Plan not enough money in the account

[Rai401k]

If in a brand new Cafeteria Plan only first month employee contribution is funded. If one persons Health reimberment is greater than the money available, how do we handle.

[Guest b2kates]

Under the regulations, the maximum amount of the elected coverage msut be available at all times during the coverage period. Prop Reg. 1.125-3 Q&A 6,7.

Accordingly, the employer must advance the payment against future payroll reductions.